Transportation insurance relating to ships and their cargo; the insurance covers all risks due to hazards at sea on certain shipping for a certain period of time, except those expressly stated not to be covered. ”
Financial Fervices Authority
What is Marine Insurance?
Sea Insurance is included in the type of transportation insurance which is an insurance product that aims to provide protection for goods transported either by land, sea or air. Transportation insurance is intended for the owner of the goods either individuals, institutions or companies, which need protection for the transportation of goods.
Definition of Marine Insurance
A type of marine insurance that aims to protect the insured (such as exporters, importers, senders of goods, ordering goods, moving goods owners) against the risks of loss or damage to goods as long as the goods undergo transportation or delivery.
Benefits of Marine Insurance
- Freight insurance or Marine Insurance policies cover losses caused by events that happen to come from outside.
- The marine insurance policy states the risks that are guaranteed. If losses occur due to these risks, the insurance will provide compensation.
Types of Losses That Are Not Covered by the Insurance Party
- Intentional action from the insured
- Natural leakage or natural wear
- Caused by insufficient or incompatible packing
- Caused by the nature of the goods
- Caused by delay
- Caused by bankruptcy or costs incurred due to bankruptcy
- Caused by the use of weapons of war that use atoms or nuclear
- Because it is not seaworthy for ships or barges
- The risks of war
- Strikes, bans on workers